Similar to Bitcoin and Ethereum, Dogecoin also comes on the list of cryptocurrencies, even though it has completely distinct attributes. Dogecoin came into being; as a result of a lighthearted joke by some crypto enthusiasts as a viral meme and following the increased trust in bitcoin and overall growth of the crypto industry. The value of Dogecoin reached up to $1 on April 20, 2020, and since then, that day is known as “Doge Day.”
People are becoming obsessed with Dogecoin, and it is going to be a star of the crypto world. It is under discussion in one way or another. The ones familiar with Dogecoin are urging for its updates, and the rest is the curiosity to find out what Dogecoin is. Public figures, including Snoop Dogg & Tesla owner Elon Musk, made people deeply interested in it.
What is Dogecoin?
Resembling an altcoin of Bitcoin, Dogecoin is a P2P open-source cryptocurrency offering an entirely anonymous, decentralized, and protective atmosphere that does not indulge any third party while making a transaction.
How Did Dogecoin Start?
In 2013, Dogecoin was developed by two software engineers as a prank for top-notch cryptocurrencies like Bitcoin. These engineers were impressed by the viral Doge meme containing an image of the Shiba Inu breed. But soon, it became the obsession of people, and today the value of Dogecoin is more than $45 billion in the crypto world. You can buy Dogecoin on relevant exchanges just like you can buy and trade Bitcoin on the Bitcoin Trading Software.
How is Dogecoin Going?
Dogecoin gained popularity in 2013 among individuals who wanted to sink their feet in the crypto sea. Afterward, virtual forums like; Dogecoin & Reddit were initiated to reward their content creators with Dogecoin. In 2014, it set an upward trend in the trading value of various cryptocurrencies, specifically Bitcoin. Later, Elon Musk- the well-known admirer of Dogecoin, often began tweeting about the cover of the imitated ‘Doge’ magazine, resulting in the uplift in the prices of this coin. Subsequently, other celebrities such as Snoop Dogg began to tweet about and advertise Dogecoin on social media platforms. In 2020, a single tweet from Elon Musk resulted in increasing the value of Dogecoin by more than 600%.
How Does Dogecoin Work?
Like many other cryptocurrencies, Dogecoin works on its delicate blockchain. The digital ledger of Dogecoin is being updated continuously, and the network utilizes cryptography to protect transactions. The users of Dogecoin contain a digital wallet having a public as well as a private key to log in.
An individual willing to make a transaction first requests a person by putting the wallet ID and public key of that person. After the request is submitted, Dogecoin miners get notified about the request, and the mining process is started. Dogecoin miners ensure the availability of required funds to make a payment, and after the authorization, the transaction request gets approval. During this time, the miners of Dogecoin strive for getting the unsettled data of transactions, called the nonce.
After collecting nonce, miners try to solve the complex mathematical equations to create accurate hash numbers for them. The miner who succeeds in creating the right hash number gets a reward of 25 Dogecoin in his account. Then both the parties receive a confirmation text indicating that their transaction has been approved. Within a couple of minutes, the receiver gets the requested amount in his digital wallet, which shows the completion of a transaction.
Advantages of Dogecoin
- Completed transactions take no time for verification.
- Dogecoin has very low transactional fees.
- The community of the Dogecoin network consists of friendly and sincere followers and creators.
- The relatively low price of Dogecoin facilitates multiple social platforms to reward their content creators, and it can be considered the gaming currency as well.
- Dogecoin gets worldwide endorsement.
Disadvantages of Dogecoin
- The mining of Dogecoin produces meager profit due to its relatively low cost and its attachment with a large number of cryptocurrencies.
- The functionality and feature-ability of Dogecoin are limited as there are no Smart Contracts in the Dogecoin Blockchain.
- Options to purchase Dogecoin are scarce. For example, Coinbase is not encouraging it.
- In comparison to the top-notch cryptocurrencies, Dogecoin is considered less reliable as it faces security issues.
The Bottom Line
While Dogecoin may have started as a meme coin, there is no denying Dogecoin’s existence in the world of cryptocurrency. From its funny origin to its massive rise in popularity and price during the last bull run, Dogecoin is here to stay whether you like it or not! ?